Home Business ITC’s Q4 earnings: Net profit drops slightly to Rs 5,020 crore; declares dividend.

ITC’s Q4 earnings: Net profit drops slightly to Rs 5,020 crore; declares dividend.

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On Thursday, ITC Ltd announced a standalone net profit of Rs 5,020.20 crore for the March 2024 quarter, marking a 10% year-on-year decline.

In the March 2024 quarter,ITC’s Q4 earnings: Net profit drops slightly to Rs 5,020 crore; declares dividend. standalone net profit was Rs 5,020.20 crore, declining 1.3% YoY from Rs 5,086.86. Sequentially, the profit remained almost unchanged from Rs 5,572.07 in December 2023 quarter. 

Revenue from operations in Q4 FY 2023-24 was Rs 17,571.72 crore, flat YoY from Rs 17,506.08 crore. In Q4 of the previous fiscal, revenue was Rs 17,224 crore, and in the quarter ended December 31, 2023, it stood at Rs 17,224 crore.

Ebitra for the quarter stood at Rs 6,162.6 crore, declining by 0.8%. Ebitda margin fell by 70 basis points YoY to 37.2%. Cigarette volumes remained flat, impacting earnings, along with lower FMCG margins.

The company proposed a final dividend of Rs 7.50 per share for FY 2023-24, subject to approval at the AGM scheduled for July 26, 2024. The dividend, if approved, will be disbursed between July 29-31, 2024.

Revenue from the cigarettes segment grew 7% YoY to Rs 8,689 crore in March 2024 quarter. PBT for the cigarettes segment increased 5% YoY to Rs 5,157 crore in the preceding quarter.

ITC's Q4
Source: Research & Ranking

In Q4, FMCG-others business revenue rose 7% to Rs 5,308 crore from Rs 4,951 crore. PBT for the segment decreased 5% to Rs 480 crore.

Following quarterly earnings, ITC shares remained stable on Thursday. The stock traded at Rs 445, up by just 1%, with a market capitalization exceeding Rs 5.52 lakh crore. In the prior trading session, the stock closed at Rs 439.75.

In a regulatory filing, ITC’s Q4 stated, “The board also:

(a) Recommended a Final Dividend of ₹7.50 per ordinary share for FY 2023-24, subject to approval at the ensuing 113th AGM scheduled for July 26, 2024. The dividend, if approved, will be paid between July 29-31, 2024.

(b) Set Tuesday, June 4, 2024, as the record date for determining entitlement of members for final dividend payment.”

ITC's Q4
Source: Business Today

ITC’s Q4 standalone net profit fell 1.3% to ₹5,020.20 crore amid weak demand. Revenue increased 1.4% to ₹17,752.87 crore, surpassing estimates. Decline in revenues noted in agriculture and paperboards, and paper and packaging segments.

Expenses rose 2.4% YoY to ₹12,017.71 crore in January-March. FMCG revenue (excluding cigarettes) increased 7.1% to ₹5,300.17 crore driven by staples, biscuits, snacks, dairy, homecare, and incense sticks.

For the full year, FMCG-others segment grew 9.6% YoY to ₹20,966.83 crore. EBITDA for the quarter was ₹616.42 crore. ITC shares closed 0.33% higher at ₹441.20 on BSE.

You might also be interested in – ITC shares surge following ITC Infotech’s acquisition of Pune-based IT firm for Rs 485 crore.

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